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MicroStrategy (MSTR) now has a market capitalization of over $100 billion, making it the 93rd largest publicly traded company in the United States.
As of this writing, MSTR has more trading volume than today’s stock giants Tesla and Nvidia, and it’s causing traditional stock traders like the Wall Street Bets community to lose their minds.
wow $MSTR It is the most traded stock in the United States today. $TSLA and $NVDA it’s crazy. It’s been a few years since the stock traded in more than one of two ways (in fact, it may have been). $GME finally). That’s about twice as much $SPY! Wild times.. pic.twitter.com/bUr8nycMX3
— Eric Balchunas (@EricBalchunas) November 20, 2024
This is truly surprising considering that when MicroStrategy first purchased Bitcoin for its treasury about four and a half years ago, the company was only worth $1 billion.
The biggest question I’m asking myself is when and how will this end? Assuming that MSTR continues to rise until this bull market peaks, it is anyone’s guess how high MSTR could go.
But considering that it is essentially a transaction utilizing Bitcoin, how difficult would a collapse be in a bear market? Dare I suggest that this time might be different, and that the downside of the next Bitcoin bear market might not be as brutal as the 70%+ corrections we have seen historically?
Despite the spot Bitcoin ETF and the idea that the United States could lead the charge for countries to purchase large amounts of Bitcoin, I am not confident that the Bitcoin price will not eventually fall on a large scale. And I am mentally preparing that a normal Bitcoin bear market will begin after this bull market ends in the next year or so.
But back to MSTR, Michael Saylor has so far proven that his Bitcoin strategy for businesses works in surprising ways. Public companies have come out of the woodwork in the past week announcing that they have purchased Bitcoin for their balance sheets or plan to do so, and this trend looks set to continue as Rumble’s CEO asked the X audience if they should add BTC. (Nearly 94% of his 42,522 voters voted “yes”).
Let’s put this into a survey format.
Should Rumble add Bitcoin to its balance sheet?
— Chris Pavlovski (@chrispavlovski) November 19, 2024
Michael Saylor also helped explain how and why Rumble should adopt an enterprise BTC strategy.
Institutional Bitcoin adoption has begun and this will only grow in the near future. As companies grasp the logic of adopting Bitcoin as a strategic reserve asset, the number of public companies adopting this strategy will explode.
Any company that adds Bitcoin to its balance sheet will outperform most other companies (even the top tech giants) in terms of trading volume, as MicroStrategy has done, until all companies add Bitcoin to their balance sheets. I try to think from the perspective of a trader with knowledge of Bitcoin and think, “Why on earth would I buy stock in that company if they don’t have Bitcoin on their balance sheet?” I won’t do that. That would be too boring.
Putting BTC on the balance sheet creates volatility, creating opportunities for stock traders, which is good for traders, the stock price, and the company as a whole. If you are a publicly traded company, adopting Bitcoin as a treasury reserve asset should be a no-brainer.
This article take. The opinions expressed are solely those of the author and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.